Olsson's contract at The Hawthorns expires at the end of the season, but after playing a key role in the club's impressive start to the season, Clarke has admitted that he hopes the Swedish defender will extend his stay at West Brom.
Clarke said: "Jonas's discussions are ongoing. The fact that his agent was here tells you that.
"We've made it clear that we want him to stay but Jonas has been terrific in the matches he has played since I have been here.
"The contract talks certainly haven't been playing on his mind and he has played a big part for Albion."
The 29-year-old has made 141 league appearances for the club since joining from NEC Nijmegen in 2008.